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Thread: Food prices soar as incomes stand still

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    Re: Food prices soar as incomes stand still

    Quote Originally Posted by Carjosse View Post
    So a one to two percent increase in fuel distributed among several thousand dollars worth of goods doesn't equal that much on an increase. Avgas is aviation fuel which costs exponentially more than diesel for trucks, what I was pointing out is that there are people who pay 11$ for a box of cheerios due to it and the situation could be much worse. Not to mention here fuel is just more expensive and when I was in the U.S. sticker prices are the same for most things except fresh fruit and cheese.
    Well, it would be helpful if you would stick to the United States, considering that is what I am talking about here. No where did I make any comparisons to Canada, and frankly, your own countries high prices are your problem to fix...Not mine...
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    Re: Food prices soar as incomes stand still

    Diesel fuel is exported from the US to Europe, and gasoline is imported to the US from Europe. Diesel fuel in Europe is far more popular and it is required to be the low sulfur type. That is one reason for the higher price.

    As for low sulfur, the low sulfur is required for the pollution controls that would become fouled with higher levels of sulfur.

    As for food prices. Other countries that were very poor before are starting to lead near middle class lifestyles (eastern China, and about 200 million Indians). They are eating more meat, more chocolate, see a thread on DP about chocolate prices going up drastically.
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    Re: Food prices soar as incomes stand still

    Quote Originally Posted by j-mac View Post
    I have spoken on this several times in the past, and as a truck driver that delivers the bread, and milk that you buy, I can attest to the many factors driving the costs of these items. Much of this inflation is artificially imposed due to factors of outside influences from government, and alike.

    1. The price of diesel fuel...."Diesel fuel, the kind of fuel commonly used in commercial trucks, has not always been more expensive than the standard gasoline used in passenger vehicles. On paper at least, diesel fuel is a less refined petroleum distillate than gasoline, so it should always be cheaper to produce than gasoline...

    In recent years, the federal government has mandated changes to the acceptable sulfur level of diesel fuel, and refiners must comply with these mandates to create an ultra low sulfur diesel fuel product. This means significant investments in new technology and several distillations before the finished fuel is deemed acceptable by government inspectors. All of these additional regulations and high-tech equipment can cost billions of dollars, and these expenses are often passed onto consumers through higher prices.

    There are also higher federal excise taxes placed on diesel fuel compared to standard gasoline. Some critics suggest the federal government is less eager to impose higher taxes on millions of private drivers than thousands of commercial drivers who use a less popular fuel. Part of the reason diesel fuel is more expensive than gas is the total amount of federal and state taxes added to each gallon."

    Why is Diesel Fuel More Expensive Than Gasoline?

    2. the cost of uncertainty due to Obamacare...."Last week the president, for the second time in about seven months, delayed the employer mandate, which requires medium- and large-sized businesses to offer insurance to employers.The original Jan. 1, 2014, start for the mandate, which requires businesses with 50 to 99 full-time employees to offer the insurance or face a tax penalty, was delayed in July for one year. On Monday, Obama delayed it until 2016."

    Republicans: Obama violating Constitution, but little can be done about it | Fox News


    In fact, Obama has changed the law something like 27 times without going to congress to do it...If anyone thinks that these trends are business friendly to spurring growth, or lower prices then I have a bridge to sell them....

    The bottom line is that the progressive attack on capitalism is going to cost everyone, even those who can't afford it....So in the end, progressivism hurts the people it claims to help the most.
    While all this is true, and you have the first hand experience, prices have been going up everywhere between the time the food is produced and the time it reaches the consumer. People are paying more for services they may no longer need or want, and the employees, benefits, pensions and debt that go along with them. And with the government printing ever more money to keep the economy going, temporarily, people like Jen Singer are going to see a lot more inflation.

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    Re: Food prices soar as incomes stand still

    Quote Originally Posted by GottaGo View Post
    You think people can actually 'survive' on mac n cheese? Virtually no nutritional benefit from that.... so we go back to the vicious circle of poor nutrition, poor health, medical assistance.
    That was just an example, it would be the same for rice or chicken. It is a negligible difference.

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    Re: Food prices soar as incomes stand still

    Quote Originally Posted by GottaGo View Post
    Ecology and economy are a balancing act, but with food prices rising the way they are, and the quality getting worse and worse, exactly how are the low or fixed income groups supposed to continue eating?
    increase wages?
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    Re: Food prices soar as incomes stand still

    Quote Originally Posted by Unitedwestand13 View Post
    increase wages?
    Businesses can't do that, it would cut into their profit margins.

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    Re: Food prices soar as incomes stand still

    Quote Originally Posted by Carjosse View Post
    That was just an example, it would be the same for rice or chicken. It is a negligible difference.
    Didn't read the OP's article or food shopped recently, have you?
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    Re: Food prices soar as incomes stand still

    Quote Originally Posted by Unitedwestand13 View Post
    increase wages?
    Of course. Everyone should be paid $50 an hour.

    Problem solved.

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    Re: Food prices soar as incomes stand still

    Quote Originally Posted by Unitedwestand13 View Post
    increase wages?
    Your theory of increasing wages goes something like this....

    Increase wages, food growers have a higher COGs, pickers get paid more, packers get paid more, trucking companies pay their drivers more, grocery stores charge more.......

    It's not a long term answer.
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    Re: Food prices soar as incomes stand still

    Quote Originally Posted by GottaGo View Post
    Your theory of increasing wages goes something like this....

    Increase wages, food growers have a higher COGs, pickers get paid more, packers get paid more, trucking companies pay their drivers more, grocery stores charge more.......

    It's not a long term answer.
    Americans had the answer in free enterprise but drifted away. Now that the government is totally involved in the economy it will be difficult to get that freedom back.

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